I'm doing my first deal analysis and I have a couple questions

[Daniel Hemmings]

Hello BP world, 

Im analyzing my first potential buy. the property is off-market 2 family home with a possible 3rd unit on top. The house wholesale price is 299k. Estimated rehab is between 140k-175k,ARV 470k-500k. It has a active oil tank as well. I decided to run my numbers to see if this makes sense. rental income, if all floors are occupied is $5050/MO but the mortgage and expenses are $4300 a month not including money aside for repairs, vacancy etc. on the initial testing,monthly cash flow would be $250ish. 299k just won't work, I came back to the wholesale guy and he said the owner owes 235k and wants 45k on top of that and they won't entertain under 280k.I did the 65% rule and even with that I was over budget 100k. I changed the Purchase price to 240k and the CoC ROI before the refinance is 4.4% with $740 monthly cash flow, purchase cap rate at 13.3%. After the refinance is when the deal looks sweet with 17.6% CoC ROI and over 1k/MO cash flow. Two questions, should you do a deal when the initial rental period ROI is low but the refinance after makes up for it ? and is this just a deal to walk away from because even at 235k with an estimated 140-175k to go into it, the 65% rule wouldn't work. let me know your thoughts